Friday, May 3, 2024

Why Devold no longer buys wool at auction

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Sheep to Shop is a direct route that bypasses the selling floor to buy directly from NZ farmers.
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By Trude Ertresvåg, chief sustainability officer at Devold of Norway

Farmer Toby Williams shed light on why he stopped selling his wool at auctions in a recent opinion piece. Auctioned wool barely covers the shearing costs, leaving the farmer in the red while others profit. 

But the reasons for not buying at auction have not been explained.

In 2018, Devold revamped our wool sourcing, launching the Sheep to Shop quality strategy, bypassing auctions to collaborate directly with New Zealand wool growers. Though often linked with sustainability, an alluring narrative, the truth is simpler: the change stemmed from customer complaints and high return rates. 

Continuing with auctions would have meant blending short and long wool, making wool tops at a lower price, but leading to higher rejection rates. As our wool guy in NZ, Craig Smith, says: “If we can’t spin a great yarn, it won’t make a great product.” 

Williams eloquently likened auctions to mixing various drinks – an incompatible concoction.

Previously, we faced a high rejection rate due to holes, resulting from prioritising price over quality. Now, with a less than 0.5% rejection rate, our improved sourcing yields superior products, reducing waste and supporting farmers. It shows how sustainability is a derivate of quality. 

We cut down on consumption by maximising how many times you can wear our clothes, ultimately drawing in new customers. 

Through six-year contracts, we ensure stability and reward wool growers based on individual performance. This contract model has been developed in full collaboration with our wool growers. 

After an initial failed attempt, we sat down with our wool growers, who rightly pointed out that benchmarking with the auction system was not appropriate – the wool we were buying from them was anything but average. 

Consequently, we cancelled the contract, and realigned with the growers’ wool quality, devising a new agreement featuring fixed prices and a bonus model for even stronger and longer fibres. 

Our growers are selective about who enters our Sheep to Shop programme. Their discerning approach in selecting participant wool growers reflects pride in their product and our shared success. Our Devold wool growers choose to work with us, and we proudly choose to work with them. 

Williams rightly highlights a key challenge: “The problem is that 90% of our wool is sold on the international market as a low-value raw material, where we’re competing with cheaper synthetic fibres made from fossil fuels.”

This competition is worsened by proposed European Union legislation requiring brands to label their garments with emissions from production. The EU wants brands to use the Product Environmental Footprint methodology, PEF, or, as we call it, the biggest load of bull since the invention of synthetic fleece. It’s like comparing a fluffy sheep to a plastic water bottle. 

PEF measures the impact of making natural fibres but overlooks the impact of synthetic ones derived from crude oil. 

Fossil fuels, the source of synthetics, are labelled “sustainable”, while natural fibres like wool, naturally renewable and biodegradable, are rated as less sustainable. 

This matters because brands will seek fibre options with better ratings. 

Renaming it “preferred materials” or “sustainable materials” doesn’t change the fact that 99 % of recycled polyester comes from the closed loop system of recycled bottles, which are then used only once in garments, rather than being kept in a circular system. 

We’re optimistic for PEF’s overhaul or its silent demise, aiming for true sustainability.

The road to quality faces obstacles without broader support or regulatory frameworks pushing for it. Without such support, the future of quality wool hangs in the balance. 

But we’re not backing down. Instead, we are doubling down on efficiency and uncompromising quality, because when life hands you wool, you make the softest damn sweaters the world’s ever seen. And that’s a fashion statement worth making. 

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